Investor Spotlight

Heading into the Bullish Week of the Year

This is my favourite time of the year. Yes ... Its the Christmas Holiday season and this year we had a 3 day weekend to celebrate it. Best of all, the weather in Florida has been a delight. The high has been in the 70's at daytime and in the 60's at night. The air is crisp and cool with low humidity, clear blue skies and beaming sunlight at daytime warming your face and back. Market is also in a delightful frame of mind with just 3 'distribution days' in the $NASDAQ. The week after Christmas traditionally is one of the best weeks of the year in the market. We all should have been building stock positions gradually since September. The performance of the 3 major indexex and the 9 main sectors since August 31st (17 weeks) is highlighted below:

$QQQ ... +7.64%
$SPY ... +8.10%
$DJI ... +12.78%
$XLU ... -2.52%
$XLV ... +1.99%
$XLP ... +3.93%
$XLB ... +9.57%
$XLK ... +9.71%
$XLI ... +10.14%
$XLY ... +10.40%
$XLF ... +13.56%
$XLE ... +14.29%

In my blog post 2 weeks ago, I had mentioned that I was noticing the sector rotation into the $XLF (Financial Sector) and $XLY (Consumer Discretionary Sector). Heading into the last week of the year, We are seeing that the institutions have been pulling money out of the conservative dividend paying $XLU (Utilities Sector) and taking positions in the beaten down $XLE (Energy Sector). You would not have noticed this sudden rotation in the energy sector if you were the one consumed by the story of $BITCOIN this month. As a trader and an investor, I often remind myself that the baseball game is often won by runs batted in (RBI) and not the home runs. Profiting in the stock market is all about the discipline of identifying the right stock and having a trade plan in place for profit, loss and time exits well defined and written down.

Performance of My Stocks

Every week end, I track the market by analyzing the 3 major indexes, all the 9 major sectors and the leading stocks that have outperformed the major indexes. It does take a lot of work but as a retail investor, it's best to follow the lead of the institutions. It takes them several weeks to build their full position in the stock and in the process, they leave a trail behind for me to follow. With my rules of trading Growth Stocks, the only stocks to buy are the leading stocks in the leading sector. They offer the best chance of "Out Performing the Market". Here are the results of the 9 stock positions currently. I have indicated in parenthesis, the date and the price the stock was purchased.

$AMZN ... (11/15 ... $1122.0) +4.1%
$SIVB ... (12/1 ... $227.04) +6.46%
$GGAL ... (12/4 ... $58.62) +11.69%
$NVR ... (12/7 ... $3200) +16.0%
$CACC ... (12/7 ... $300.0) +8.34%
$GRUB ... (12/13 ... $70.0) +2.49%
$AMTD ... (12/14 ... $51.0) +3.82%
$GGG ... (12/18 ... $133.0) +1.20%
$VMW ... (12/18 ... $126.0) +1.69%

These stock trades were initiated anywhere from 1 week to 6 weeks ago (average hold period for all 9 stocks is 2.44 weeks currently). Average performance for all 9 stocks currently is +6.16%. This averages out to +2.52% per week per stock (131% annualized). Some of these stocks may falter but I have a Trade Plan in place to exit for Loss. They have already reported earnings so that risk has been mitigated.

Mentoring Program

Would you like to learn:

How to "TIME" the market?
How to identify the Leading Stocks in the Leading Sector?
How to Plan your Trade for Profit, Loss and Time in the trade?
How to manage your Stocks to "Out perform the Market"
How to Mitigate "RISK" with your stocks?

Schedule a FREE 30 minutes of 'Discovery Call' with us. Let us help you become a profitable investor with our individualized mentoring. It will be a New Year next week and make a resolution now to learn to trade an invest in your education. You have already missed out on profiting handsomely in 2017. Don't procrastinate. Learn from the best educator in the business. We have just a few spots left for our January calendar.